If the time has come to sell your home, you may be considering listing the home as “for sale by owner” (FSBO) in an attempt to save the approximate 6% commission you would pay a realtor. But while some savvy homeowners can successfully navigate an FSBO situation, the vast majority come out ahead when they hire an agent. Before you make any hard and fast decisions, consider these four reasons why hiring a realtor to orchestrate your sale is almost always worth the cost.
You’ll Get More for Your Home
Experienced realtors have an in-depth knowledge of the housing market in your area and can reliably predict how much your home is worth. While you can do some quick comparisons and come up with an asking price, there’s a good chance you’ll either underprice or overprice your home. Underprice your home, and you’ll be missing out on earnings. Overprice your home, and it may sit on the market for months before someone finally makes you a low offer.
According to a study conducted by the National Association of Realtors, FSBO homes sold for an average of $185,000, whereas those listed by realtors sold for an average of $240,000. The extra money you make on your sale should more than cover your realtor’s commission.
You’ll Have Access to More Potential Buyers
Real estate agents have access to networks of other agents. They keep in contact with these other agents regularly, informing them of the homes they have listed and asking if they may have any interested buyers. By working with a realtor, your home will be exposed to many buyers who may have otherwise not even come across it.
There are also many home buyers who won’t even consider buying a home that’s listed as FSBO. They’re aware that the sale process is likely to be slower and more complicated due to the homeowner’s lack of experience orchestrating a sale. On the other hand, interested buyers will approach with confidence knowing that the sale is being overseen by a reputable realtor.
You Won’t Have to Spend Time Advertising
Simply putting a sign in the yard is not enough these days. To find a buyer, you’ll need to list your home on various websites and apps, utilize social media, hold open houses, film videos, and take detailed photos. If you list the home as FSBO, be prepared to spend countless weekends and weeknights tackling these tasks.
Hire a realtor, and they’ll take care of the advertising for you, leaving you free to plan your move, job change, and other changes associated with the sale of your home. You can also be assured that your social media posts, photos, and videos are of professional quality, which may not be the case if you don’t have the right equipment or skills on hand.
You Won’t Waste Money on the Wrong Renovations
Making some quick renovations and adjustments may help you find a buyer and earn more for your home. However, making the wrong renovations is just a waste of money. For example, you might think that adding a standing shower to the bathroom will make it so much more appealing, but the shower may mean nothing to buyers in your market.
An experienced realtor can tell you which remodeling projects are worth your time and which ones are a waste of money. This really depends on your home’s unique layout, the neighborhood, and current design trends, so making the same changes a friend or family member made is not a reliable strategy. By ensuring you make the right changes to your home, your realtor could save you thousands on renovations.
While there are homeowners who successfully list their homes as FSBO, they are the exception rather than the rule. In the long run, you’re likely to earn more for your home and enjoy a much smoother selling process by hiring a realtor to represent you and oversee the sale.